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Relationship between bank competition and stability: the case of the UK

Banks and Bank Systems, ISSN: 1991-7074, Vol: 13, Issue: 1, Page: 98-114
2018
  • 10
    Citations
  • 0
    Usage
  • 31
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    10
    • Citation Indexes
      10
  • Captures
    31

Article Description

There is no consensus in theoretical and empirical studies about the relationship between bank competition and stability. This research aims to investigate the relationship between bank competition and stability in the UK. The analysis has been done on a large sample of UK banks for the period 2004–2014. There is quite contrasting evidence on the bank competition and bank soundness relationship. A unified framework has been developed to assess how different factors may make it more likely that the data favor one theory over another. The results suggest that in some cases a U-shaped relationship exists between bank competition and stability. Therefore the conclusion is that in order to protect the bank from different risk exposures a moderate level of bank competition is needed.

Bibliographic Details

Zhanbolatova, Alau; Ziyadin, Sayabek; Zhumanov, Kairat; Jumabekova, Almagul; Deputy Head of the Research Center for Anti-Corruption Academy of Public Administration under the President of the Republic of Kazakhstan; Doctor of Economics, Professor, Director of the Center for Economic Research, al-Farabi Kazakh National University; Doctoral Student, al-Farabi Kazakh National University; Ph.D. (Economics), Senior Lecturer at Department of Finance, Kazakh University of Economics, Finance and International Trade

LLC CPC Business Perspectives

Business, Management and Accounting; Economics, Econometrics and Finance; Social Sciences

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